6 Ways to Cut Business and Personal Expenses

In any economic environment, businesses and individuals look for ways to trim expenses and maximize efficiency. Who wouldn’t want to save a few bucks if they could? But taking some steps to save money becomes even more crucial when times are tough.

Following are several strategies that individuals and small business owners can use to save money related to their finances.

Personal

There are plenty of places where individuals can cut, but those are personal choices that will depend on their priorities. It’s up to you to decide what’s really important and what can go. But here are three key personal expenses that I think most everyone can do without.

• Checks and postage. Online bill pay avoids postage and the cost of printing checks. You can schedule one-time, occasional or recurring payments. Funds are not withdrawn from your account until the payment date is due, so funds stay in your account for as long as possible.
• Insurance on rental cars. When you rent a car, the rental company will offer a collision-damage waiver (or loss-damage waiver) that costs about $10 to $20 a day. As long as the rental is for personal use and you have collision coverage under your auto insurance policy, you don’t need this. You’re already covered without the waiver, with the same deductibles that apply to your own car.
• Warranties. As cell phones and other electronics get cheaper and cheaper, warranties don’t make as much sense. Many times a replacement costs just a little more than the warranty does. The same is true with appliances.

Business

Some of the tips above, particularly online bill pay, apply to businesses as well. But here are three other expenses that business owners can cut.

• Trips to the bank. With remote deposit, you can deposit checks from your office using a scanner connected to a secure website. Fewer trips to the bank mean fewer mileage reimbursements and reduced liability for employees on the road.
• Over-insurance. Ask for a no-cost insurance review on all of your policies to make sure you’re not paying for more coverage than is necessary. Now is a great time to do this, because many policies will be coming up for renewal. I’ve seen a lot of clients save money this way in the past few months.
• Taxes and insurance on fixed assets. Conduct an audit of your fixed assets. Clearing your books of assets you no longer have will help reduce your insurance bills and taxes. While you’re at it, make sure you claim any deductibles and credits you can come tax time.